Market watch: What does the F&O market suggest about trade on January 11?

Max pain at the end of today's trade stands at 17900.

Nifty 50, after a gap of two months again claimed the 18000 level and gained for the second day in a row. The index opened with a gap-up of 100 points and built on that with a minor dip in between and finally closed at day’s high. At close, Nifty was up 1.07 per cent or 190.6 points at 18003.3. This gain has come against the backdrop that on Monday as the US Treasury yields reached a new two-year high. This is the reason why we saw Nifty VIX did not cool off and closed with a gain of 0.43 per cent at 17.68.  

Activity on the F&O front for weekly expiry on January 13 shows 18000 to act as a strong resistance now. Highest open interest contract of 88835 stood at this strike price. The second-highest call option open interest 85375 for Nifty 50 stood at a strike price of 18500. In terms of the highest addition of open interest in the call options front, it was at 18500 in the last trading session. A total of 84252 open interest was added at this strike price.

In terms of put activity, the highest put writing was seen at a strike price of 17500 (90144 open interest added on 10-Jan-2022), followed by 17800 where (86759) open interest was added on January 10. Highest total put open interest (90744) stood at a strike price of 17500. This is followed by a strike price of 17800, which saw a total put option open interest of 86826 contracts.

The Nifty 50 put call ratio (PCR) closed at 1.26 for the day. A PCR above 1 is considered bullish while a PCR below 1 is considered bearish. 

Max pain at the end of today's trade stands at 17900.